Another Example of a U.S. Airline Suffering as a Result of Ex-Im Financing

American Airlines announced that it will discontinue service to India and lay off 150 workers to cut costs. The routes will be flown by its oneworld partners, including Air India. Simultaneously, Air India’s lenders recently rejected its restructuring plan. According to
media reports, Air India’s lenders rejected the plan. Air India has not been profitable for several years.

Nevertheless, Air India continues to operate using aircraft that have U.S. Export-Import Bank financing, putting U.S. carriers at a competitive disadvantage—one that could seriously harm the U.S. airline industry and risk U.S. airline jobs.

In November, ALPA filed a
lawsuit against the Bank claiming that the Bank had violated its authorizing statute by failing to consider the potential adverse effects of its Air India aircraft financing on U.S. airlines and their employees. Delta Air Lines has claimed that its 2009 exit from the U.S.-India market was caused by the Bank’s financing of aircraft for Air India.